I am not a Nordea customer. Why did I receive a letter about Nordea’s re-domiciliation?
The law obliges Nordea to inform all of its customers who have an account in Nordea or a card issued by Nordea about the re-domiciliation. A letter was also sent to account holders (e.g. death estates) whose accounts have been dormant for a long time.
Why did I receive a printed letter by post despite normally receiving my mail digitally through Netbank or Mobile Bank?
The guidelines issued by the authorities require us to send any communications concerning changes to the deposit guarantee by post in a printed letter.
Why did Nordea want to re-domicile to Finland?
The re-domiciliation will bring Nordea under the regulations of the European banking union, giving it a stable environment to develop and maintain its unique, competitive and high-quality services.
The Nordic countries are collectively the tenth largest economy in the world, and Nordea is by far the largest bank in the Nordic countries. We operate in four countries and we must be capable of operating truly as one Nordic bank in all of these markets. We want to have a level playing field and a predictable regulatory environment so we can maintain our competitiveness.
The credit ratings issued for Nordea by rating agencies are some of the highest in Europe, and we wish to maintain this privileged position. We have 9.6 million personal customers and 580,000 corporate and institutional customers. We serve our customers in numerous ways, helping young people to buy their first home, entrepreneurs to realise their dreams and companies to develop their operations, to mention a few examples.
Will the re-domiciliation have an effect on the customers?
No, our customers’ daily banking services will remain the same after the re-domiciliation. The re-domiciliation will not affect how and where decisions concerning our individual customers are made. We will remain as close to our customers as before.
The re-domiciliation will not affect interest on housing loans, pension savings, charges or fees, or any other terms and conditions of our services.
Was Nordea’s name changed after the re-domiciliation?
Yes, the new legal name will be Nordea Bank Abp. The Nordea brand name will not be changed.
Will the rate on my housing loan change?
No. The re-domiciliation will not cause changes of this type.
How will the change affect my investments in funds or unit-linked insurance policies?
It will not affect them at all.
Will my agreements with Nordea, and their terms and conditions, change?
No. There has been no need to make amendments to the substance of the general terms and conditions. However, we updated the names of the service providers and the information on the supervisory authorities in our terms and conditions. This information was also stated in the letter sent to you.
After the re-domiciliation, Nordea will offer banking services in Finland under the name Nordea Bank Abp.
How will the re-domiciliation affect my deposit guarantee cover in Finland?
Our customers’ deposits are covered by the Finnish deposit guarantee scheme. The Finnish deposit guarantee scheme covers deposits up to 100,000 euros. In addition, a deposit is compensated in full if the funds in the account have been obtained from the sale of a flat or house in the customer’s own use and they are intended for the purchase of another flat or house for the customer’s own use. Such additional cover is valid for six month as of the date on which the funds were deposited in the account.
What will happen to my deposit guarantee if I have deposited 100,000 euros with Nordea in Finland and 50,000 krone with Nordea in Denmark?
The Finnish deposit guarantee scheme covers deposits up to 100,000 euros. This amount is based on an EU directive and applies to all EU member states. The deposit guarantee is per bank and per customer. All your deposits in Nordea and its branches are included in the maximum amount of the deposit guarantee.
If you have deposited 100,000 euros with Nordea in Finland and 50,000 Danish krone with Nordea in Denmark, these will be considered as deposits in a single bank and you will be compensated for a maximum of 100,000 euros. So in this case, your deposit of 50,000 Danish krone will not be covered by the Finnish deposit guarantee scheme because the total of your deposits exceeds 100,000 euros.
However, the Danish deposit guarantee scheme is in some respects more comprehensive than the Finnish one. In Denmark, certain deposit products are covered by a more extensive deposit guarantee. Nordea has also joined the Danish deposit guarantee scheme to ensure that our customers in Denmark receive the same deposit guarantee cover as those of other banks in Denmark. If you have a deposit in Nordea in Denmark, a separate letter regarding the Danish guarantee deposit scheme has been sent to you.
How will you inform customers that their deposits will in future be covered by the Finnish deposit guarantee scheme?
We will send a letter to all of our customers who have an account in Nordea or a card issued by Nordea. This also includes those account holders (e.g. death estates) whose accounts have been dormant for a long time.
Investors’ compensation scheme
What is the investors’ compensation scheme?
The investors' compensation scheme safeguards investors' claims in cases when a bank or another investment service provider that is a member of the compensation scheme is unable to pay the investors' receivables. Compensable receivables include investors' securities in custody and cash assets related to them.
The compensation does not apply to losses arising from securities price changes or service provider’s bad advice. Such losses are always the customer’s own liability.
The investors’ compensation scheme does not cover mutual fund activities and investment-linked insurance or deposits.
The investors’ compensation scheme will compensate non-professional investors for their losses up to a maximum of EUR 20,000.
How will the re-domiciliation affect my cover under the investors’ compensation scheme?
Under Swedish law, compensation is paid if the bank or investment service provider is declared bankrupt. Under Finnish law, compensation is paid if the bank or investment service provider becomes insolvent.
In accordance with the regulation of both Sweden and Finland, the maximum amount of compensation paid to one investor is 20,000 euros.
However, subject to Finnish regulation, the compensation is calculated so that the investors’ compensation scheme is liable for 90% and the customer for 10% of the claim. Hence a full compensation requires a claim of approximately EUR 22,200 from the service provider. Swedish regulation does not apply such 90% restriction.
In accordance with Swedish regulation, both non-professional and professional investors are entitled to compensation, whereas in accordance with Finnish regulation, only non-professional investors are entitled to compensation.